Sageworks co-founder and CEO Brian Hamilton joins MoneyBeat to explain what is driving the growth behind privately held companies and just how much more they are growing than publicly traded ones.

This transcript has been automatically generated and may not be 100% accurate.

past two years of being good for the profits of publicly traded companies but the profits of private companies have been even better ... Brian Hamilton CEO research company Sageworks is here ... explore the reasons behind a primal complexity to the area ... ah yes only took about for which a company's initial time Earnings season just ended another of the season ... of what's called a private company CEO so we have a repository of private company data in you know there's twenty six million companies in the country ... only about four or five thousand of which are publicly traded ... so on what's going on is thumbs up all the way that net profits are on ... the sales growth rates above ten percent ... year over year if you compare that to publicly traded companies ... there are scoring publicly traded companies by about two fold so it's amazing ... what's really in season to some research he doesn't know ... is that all other private companies are the smaller the start of fact I think on the growth rate that they couldn't always look like a lot when you go the car is that ... some of the larger more much more private companies are also doing better whiny think that might be yes so first of all it's a great pity because ... remember the survey was sent to your right these are large privately held companies in their mental companies are some that I will list on your period competitors but ... privately held ... and they're still doing better now ... are our theory on to some stuff we know we know they're definitely doing better but that we have the stairs that may or may not be correct ... on we think it's because they usually have a longer term focus taken focus on reinvesting in the business ... in over the long run they're able to make more money also ... he'll have as many administrative constraints and kind of ... regulation ... so that's one thing ... the thing is is is something ... I run into with this new trend or is this kind of been like this for a long time yes so we've been tracking these companies for about fifteen years printers I don't know it is not a lot of great data on private companies ... but I would say this during the last recession ... the privately held companies to better than the publicly traded companies ... to more adaptive and so I think it may be the yet the article ETN and they got in the plains with or ... without the right things to come in and to ...